hedge fund replicationmanager skillseconomic factorsIn this study, we present an extension to the literature on passive hedge fund replication and its applications by introducing the Eta model, and applying it to hedged mutual funds (HMFs) in an attempt to clone their cumulative returns and ...
Also if you start losing money you don’t have to give the fees back: “The 63-year-old money manager said that almost 75 to 80 per cent of the money managed by Paulson & Co was now his own capital, reflecting years of disappointing returns that have driven outside investors away”—...
International stocks are riskier than US stocks, but provide opportunity for diversification and better returns than the US stocks. Bonds, or fixed-income investments, are generally very safe, but have limited opportunities for returns. They tend to do better when stocks are doing poorly. When you...
doi:10.2139/ssrn.2351707At a time when hedge fund returns have been stagnating and failing to meet expectations in the period from 2004-2007, they have also attracted significant amounSocial Science Electronic Publishing
Hedge funds are pooled investments that attempt to obtain superior returns for their mostly wealthy investors. Investment by the general partner in the fund tends to give investors the added confidence as the incentive is to perform well. The incentive of the manager to take excessive risks is ...